One Liberty Properties, Inc. · NYSE:OLP
One Liberty Properties — Investor Presentation (July 2021)
36 slides from One Liberty Properties's investor presentation, July 2021
Slide 1: Investor Presentation July 2021
INVESTOR PRESENTATION JULY 2021 1liberty.com ◆ 1
Slide 2: Table of Contents
TABLE OF CONTENTS DESCRIPTION PAGE DESCRIPTION PAGE Table of Contents 2 Recent Acquisitions 19 Safe Harbor Disclosure 3 Recent Dispositions 20 Company Overview 4 Recent Mortgages 21 Case Studies: Experienced Management Team 5 Acquisition – Monroe, NC 22 Attractive Portfolio Fundamentals 6 Acquisitio
Slide 3: Safe Harbor
SAFE HARBOR This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provis
Slide 4: Company Overview
COMPANY OVERVIEW Fundamentals – focused real estate company Disciplined track record over various economic cycles Active net lease strategy – continued emphasis on industrial properties Experienced management team Alignment of interests - significant insider ownership ◆ 4
Slide 5: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Chief Executive Officer since 2008, President since 2006, Director since 2002 Senior Vice President of First Washington Realty Inc. from 2004 to 2005. A joint venture with Patrick J. Callan, Jr. CalPERS that controlled 100 shopping centers (13 million square feet) whi
Slide 6: Attractive Portfolio Fundamentals
ATTRACTIVE PORTFOLIO FUNDAMENTALS(1) Total Square Footage 10.7 M Number of Properties 123 Current Occupancy 97.5% Contractual Rental income(2) $71.5 M Cosentino North America – Savannah, GA Lease Term Remaining 5.4 Years (1) Information presented as of March 31, 2021, including three properties owne
Slide 7: Portfolio Detail
PORTFOLIO DETAIL Number of Contractual % of Contractual Type of Property Properties Rental Income Rental Income Industrial 46 $38,293,691 53.6% Retail – General 30 12,531,689 17.5 – Furniture 14 6,214,380 8.7 – Supermarket 3 2,721,154 3.8 – Office Supply 5 2,085,528 2.9 Restaurants 17 3,561,806 5.0
Slide 8: Diversified Portfolio
DIVERSIFIED PORTFOLIO Highest State Concentration by Contractual Rental Income Geographically diverse footprint State Number of Properties Contractual Rental Income % Contractual Rental Income South Carolina 7 $6,522,643 9.1% Own 123 properties in 31 states New York 8 6,398,224 9.0 Pennsylvania
Slide 9: Diversified Tenant Base
DIVERSIFIED TENANT BASE % of Number of Contractual Contractual Top Tenants Locations Rental Income Rental Income Haverty Furniture Companies, Inc. (NYSE: HVT) 11 $ 4,842,847 6.8% FedEx (NYSE: FDX) 6 3,567,049 5.0 LA Fitness International, LLC 3 3,238,489 4.5 Northern Tool & Equipment 1 2,949,181 4.1
Slide 10: Financial Summary
FINANCIAL SUMMARY (1) Market Cap $604.3 M (1) Shares Outstanding 20.7 M (2) Insider Ownership 22.2% Applied Control Equipment – Denver, CO Current Annualized Dividend $1.80 (3) Dividend Yield 6.2% (1) Market cap is calculated using the shares outstanding and the closing OLP stock price of $29.15 at
Slide 11: Operational Metrics
OPERATIONAL METRICS(1)(2) Historical Net Income Per Share Historical AFFO Per Share $1.60 $2.20 $2.13 $1.33 $2.09 $1.28 $1.20 $1.05 $1.98 $2.00 $0.88 $1.90 $0.80 $1.80 $0.40 $0.00 $1.60 2017 2018 2019 2020 2017 2018 2019 2020 (3) Three Months Ended AFFO Payout March 31, 2021: 2017 83% NET INCOME – $
Slide 12: Steady Dividend
STEADY DIVIDEND(1) DIVIDEND PER SHARE Current Annualized Dividend: $1.80 $1.80 $1.80 $1.80 (2) $1.80 $1.74 $1.66 $1.60 $1.40 $1.20 $1.00 2016 2017 2018 2019 2020 (1) For the years ended December 31 (2) During 2020, approximately 18.75% of the dividend was paid in shares of our common stock ◆ 12
Slide 13: Growth Oriented Balance Sheet
GROWTH ORIENTED BALANCE SHEET AS AT MARCH 31, 2021 Gross Assets(1) $919.7 M Total Debt/Gross Assets(2) 49.4% Fixed Rate Debt 96.6% Debt Service Coverage Ratio(3) 1.9 to 1.0 Fixed Charge Coverage Ratio(3) 1.6 to 1.0 AFFO Payout Ratio 93.8% Liquidity available to acquire in excess of an estimated $1
Slide 14: Mortgage Debt Maturities
MORTGAGE DEBT MATURITIES AS AT MARCH 31, 2021(1) Weighted average interest rate of 4.18% on fixed rate debt There is approximately $14.6 million ($0.70 per share) of scheduled amortization of mortgages for the twelve months ending March 31, 2022 $200 BALLOON PAYMENTS DUE FOR THE TWELVE MONTHS EN
Slide 15: Lease Maturity Profile
LEASE MATURITY PROFILE % of Contractual Number of Contractual Rental Income Approximate Square Year Ending Expiring Rental Income Under Represented by Feet Subject to December 31, Leases Expiring Leases Expiring Leases Expiring Leases (1) 2021 10 $ 1,125,663 1.6% 256,760 (2)(3) (4) 2022 29 15,308,25
Slide 16: Stable Occupancy
STABLE OCCUPANCY (1)(2) At March 31, 2021: Occupancy - 97.5% 100.0% 99.6% 99.3% 98.8% 98.6% 98.1% 98.3% 97.8% 97.3% 97.0% 96.8% 90.0% 80.0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (1) As at December 31 (2) Based on square footage, including 100% of our unconsolidated joint ventures ◆ 16
Slide 17: Strong Rental Income
STRONG RENTAL INCOME (1)(2) $85 For the Three Months Ended $83.8 March 31, 2021: $20.7M $81.9 $78.8 $75.9 $75 $70.6 $65 $62.8 ($ in millions) $59.2 $55 $45 $35 2014 2015 2016 2017 2018 2019 2020 (1) As at December 31 (2) Rental income reflects, for all periods presented, the adoption of Financial Ac
Slide 18: Acquisition Track Record
ACQUISITION TRACK RECORD ACQUISITIONS PER YEAR $120 $118.6 $107.5 $100 $95.2 (1) $79.5 $80 ($ in millions) $60 $56.8 $49.3 $43.2 $40 $28.3 $20 $0 2013 2014 2015 2016 2017 2018 2019 2020 (1) Includes our 50% share of an unconsolidated joint venture property in Manahawkin, NJ ◆ 18
Slide 19: Recent Acquisitions
RECENT ACQUISITIONS (1) Current Purchase Date Property Lease Price Acquired Type Tenant (or d/b/a) MSA State Expiration (in ‘000s) Yield(2) 05/27/21 Industrial Pureon Inc. South Charlotte NC 05/31/27 $ 7,000 7.8% 02/24/20 Industrial FedEx Northwest Arkansas AR 07/23/27 $19,150 6.4% 02/20/20 Industri
Slide 20: Recent Dispositions
RECENT DISPOSITIONS Gross Sales Date Date Property Price Net Gain Sold Acquired Type Tenant (or d/b/a) MSA State (in ‘000s) (in ‘000s) (1) (2) 07/01/21 10/24/14 Retail Vacant Philadelphia PA $ 8,300 $ 1,299 06/17/21 10/07/10 Retail Whole Foods West Hartford CT $40,510 $21,491 12/15/20 11/17/10 Retai
Slide 21: Recent Mortgages
RECENT MORTGAGES Date Property Amount Mortgage Interest Financed Type Tenant (or d/b/a) MSA State (in ‘000s) Maturity Rate 05/27/21 Industrial Pureon Inc. South Charlotte NC $ 4,500 06/01/27 3.25% 03/16/20 Industrial FedEx Northwest Arkansas AR $12,500 07/01/27 3.63% 03/13/20 Industrial Creative Off
Slide 22: Acquisition Case Study – Industrial Pureon Inc.
ACQUISITION CASE STUDY – INDUSTRIAL PUREON INC. ◆ In May 2021, acquired an industrial building in Monroe, NC (South Charlotte MSA). Purchase Price $ 7,000,000 Mortgage(1) (4,500,000) ◆ The 93,170 SF building is net leased to Pureon, Inc. Net Equity Invested $ 2,500,000 ◆ The property is well located
Slide 23: Acquisition Case Study – Industrial Creative Office Environments
ACQUISITION CASE STUDY – INDUSTRIAL CREATIVE OFFICE ENVIRONMENTS ◆ In February 2020, acquired via sale-leaseback, an industrial warehouse facility in Ashland, VA Purchase Price $ 9,100,000 (Richmond MSA). Mortgage(1) (5,700,000) ◆ The 88,003 SF Class A building is net leased to Net Equity Invested $
Slide 24: Acquisition Case Study – Industrial FedEx
ACQUISITION CASE STUDY – INDUSTRIAL FEDEX ◆ In February 2020, acquired an industrial Purchase Price $ 19,150,000 distribution center in Lowell, AR (Northwest Mortgage(1) (12,500,000) Arkansas MSA). Net Equity Invested $ 6,650,000 ◆ The 248,370 SF building is net leased to FedEx Ground. Year 1 Base R
Slide 25: Disposition Case Study – Retail Whole Foods, West Hartford, CT
DISPOSITION CASE STUDY – RETAIL WHOLE FOODS – WEST HARTFORD, CT ◆ In October 2010, acquired a net leased store Purchase Price $ 20,550,000 in West Hartford, CT for $20.55 million. Gross Sales Price $ 40,510,140 ◆ The 47,174 SF building is leased to Whole Foods Market Group, Inc. and guaranteed by In
Slide 26: Summary – Why OLP?
SUMMARY – WHY OLP? Fundamentals – focused real estate company Disciplined track record over various economic cycles Active net lease strategy – continued emphasis on industrial properties Experienced management team Alignment of interests - significant insider ownership ◆ 26
Slide 27: Appendices
ONE LIBERTY PROPERTIES, ING. APPENDICES
Slide 28: Top Tenants' Profiles
ONE LIBERTY PROPERTIES, ING. TOP TENANTS’ PROFILES
Slide 29: Havertys Furniture – Tenant Profile
HAVERTYS FURNITURE – TENANT PROFILE ◆ Tenant: Haverty Furniture Companies, Inc. ◆ 11 properties aggregating 611,930 SF (NYSE: HVT) (Source: Tenant’s website) Duluth (Atlanta), GA Cedar Park (Austin), TX Wichita, KS Tyler, TX ➢ Full-service home furnishing retailer founded in Richmond, VA
Slide 30: FedEx – Tenant Profile
FEDEX – TENANT PROFILE ◆ Tenant: Operating Subsidiaries of FedEx Corporation ◆ 6 properties represents 5.0% of contractual (NYSE: FDX)(Source: Tenant’s website) rental income and 678,595 SF ➢ World’s largest express transportation company % of Contractual Rental Income with service to more than 220
Slide 31: LA Fitness – Tenant Profile
LA FITNESS – TENANT PROFILE ◆ Tenant: LA Fitness International LLC ◆ Representative: LA Fitness – Secaucus, NJ (Source: Tenant’s website) ➢ Operates over 700 clubs in 21 states ➢ Location: 485 Harmon Meadow Blvd, ➢ Founded in 1984 and is headquartered in Irvine, Secaucus, NJ; 4 miles west of Manhatt
Slide 32: Northern Tool & Equipment – Tenant Profile
NORTHERN TOOL & EQUIPMENT – TENANT PROFILE ◆ Tenant: Northern Tool & Equipment ◆ Location: 1850 Banks Road, Fort Mill, SC (Source: Tenant’s website) ➢ Distributor and retailer of industrial grade and ➢ Building: 701,595 SF on 40.0 acres of land personal use power tools and equipment ➢ Over 100 retai
Slide 33: L3 Harris Technologies – Tenant Profile
L3 HARRIS TECHNOLOGIES – TENANT PROFILE ◆ Tenant: L3 Harris Technologies, Inc. (NYSE: LHX) ◆ Location: 435 Moreland Road, Hauppauge, NY (Source: Tenant’s website) ➢ US based defense technology company ➢ Building: 201,614 SF on 12.4 acres ➢ In 2019, L3 Technologies and Harris Corporation ➢ Lease expi
Slide 34: GAAP Reconciliation
ONE LIBERTY PROPERTIES, ING. GAAP RECONCILIATION
Slide 35: GAAP Reconciliation
GAAP RECONCILIATION The following table provides a reconciliation of net income per share of common stock (on a diluted basis) in accordance with GAAP to FFO and AFFO 3 Months Ended March 31, Years Ended December 31, 2021 2020 2019 2018 2017 GAAP net income attributable to One Liberty Properties, In
Slide 36: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES One Liberty compute funds from operations, or FFO, in accordance with the “White Paper on Funds From Operations” issued by the National Association of Real Estate Investment Trusts (“NAREIT”) and NAREIT’s related guidance. FFO is defined in the White Paper as net income (
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